Although there are many reasons for the Great Depression there are three that stick out the most, the Stock Market Crash of 1929, bank failure and the reduced amount of products being purchased/made. In October of 1929 the Stock Market crashed, money that been used to purchase these stocks had been borrowed. Subsequently, the loans could not be paid resulting in banks failing and millions of depositors lost their life savings (Soomo,2016). Another reason for the Depression was the banks failing. Not only had some of these banks used depositor’s money and could not pay them back but banks who had not contributed this sort of activity felt the effects since people were afraid to give their money in fear of those banks failing as well. This resulting
There are some main causes The great depression, first in 1934 per week They made $ 4.80 per week and They paid $ 3 by The incomes of Their Homes, all that happened to Birmingham Alabama in 1934, in Chicago everything rises for The men and The women for the food , And then spent $ 1.10 that was spent on food in stores, The three cases are The three cases were The financial downfall, low wages, and unemployment.
The Great Depression was an economic collapse that began in 1929 and ended in 1938. During the Depression most citizens went through hardship .Three main causes of the Great Depression were the stock market crash of 1929, the Dust Bowl, and Bank failures.
The stock market crash of 1929, additionally called the Great Crash, was a sharp decrease in U.S. stock exchange values in 1929 that added to the Great Depression of the 1930s. The market accident was a consequence of various economic imbalances and structural failings (Pettinger). In the 1920s, there was a fast development in bank credit and advances. Energized by the quality of the economy, individuals felt the share
The Great Depression was caused by the stock market crash in 1929. The Great Depression was very sad time for Americans, who faced many adversities which ultimately changed the way they lived. During this period of time unemployment rose to nearly 25% of the population, those who did not lost their job saw a dramatic decrease in their pay.
Second cause of the great depression is the uneven distribution of wealth. Business owners made huge profit from the beginning of the Roaring Twenties. These business owners did not deal with the low wages of their workers. As a result, the workers were not able to afford goods as these companies produced them. Also, after the world war one, the European nations owed America billions of dollars. The economy of these European countries was devastating; thus, there was no way for these countries to repay.
Historians argue what caused the Great Depression, some say it was due to the stock market, others say it may be the war debt or overproduction. To believe the Great Depression was caused by only one event is naive. It was caused by a multitude of problems that the government failed to fix.
The Great Depression was the result of life during the Roaring Twenties. People heavily valued materialism and hedonism which in-turn made many people try to find a way to gain a large amount of money in a short period of time. As more and more people were intoxicated with greed and selfishness, they became more careless through their actions and made many mistakes. These mistakes led to the
There were easily multiple causes for the start of the Great Depression in 1929. Many historians and economists put emphasis on organizational causes such as actions by the Federal Reserve. Often part of any business cycle are recessions due to the changes of supply and demand, but what turns this business cycle into a depression is always up for debate. In the case of the Great Depression, the stock market crash of 1929, bank failures, debt deflation, and American economic policies with Europe
There were several factors that played a major role in the Great Depression. The main explanation was overproduction of both farm and factory and the unequal distribution of wealth throughout the 1920s. The excessive speculation in the 1920s kept the stock market at a deceitful high, and came crashing down in 1929. Over extended credit at
Many people think that the Great Depression was caused solely by the stock market crash. Anybody who tells you this probably didn’t pass U.S. History in high school. The fact is, the Great Depression was caused many different factors. Four of which were overproduction, uneven distribution of wealth, protective tariffs, and the four “sick industries” of the 1920’s.
There was no single cause to the rise of the Great Depression, however many situations and events came together to make it happen. Over-production of goods, over spending, and a weak banking system caused the depression to occur. However, the Wall Street Crash of 1929 was the main cause to the start of the Great Depression. The Wall Street Crash began on October 24, 1929 now known as Black Thursday. 12.9 million shares were traded. By October 29th, stock prices began to plummet and banks started to call in for many loans. About thirty billion in stock values disappeared by mid November. This marked the beginning of the Great Depression.
The first factor in the start of the Depression was the lack of diversity in the American Economy. It relied strongly on only a few basic industries, notably the construction and automobile industries. In the 1920's those 2 industries began a rapid decline: construction became scarce and fell from 11 billion to under 9
The Great Depression was started from the horrific stock market crash in October of 1929. Many people lost their life savings as the market crashed. This scared everyone to take their money out of the banks which hurt the economy even
The Great Depression of 1929 is said to have many causes. In an article on about.com Martin Kelly states there were five main causes of the Great Depression. First is the stock market crash
One cause was when the stock market crashed on October 1929. Then two months later the same stockholders had lost more then 40 billon dollars .The stock market did regain some of the losses but was not enough at the end of 1930 therefore they entered the great depression